Linear Technology Reports Sequential Quarterly Declines, but Modest Year Over Year Quarterly Increases in Revenues and Net Income and Guides for Sequential Quarterly Improvement.

Linear Technology Corporation (NASDAQ:LLTC), a leading, independent
manufacturer of high performance linear integrated circuits, today
reported financial results for the fiscal quarter ended December 30,
2012. Quarterly revenues of $305.3 million for the second quarter of
fiscal year 2013 decreased $29.9 million or 8.9% from the previous
quarter's revenue of $335.1 million and increased $10.9 million or 3.7%
over $294.3 million reported in the second quarter of fiscal year 2012.
Net income of $88.8 million decreased $16.3 million or 15.5% from the
first quarter of fiscal year 2013 and increased $0.9 million or 1% over
the second quarter of fiscal year 2012. Diluted earnings per share of
$0.38 per share in the second quarter of fiscal year 2013 decreased
$0.07 per share or 16% from the first quarter of fiscal year 2013 and
was flat compared to the second quarter of fiscal year 2012.

During the second quarter the Company's cash, cash equivalents and
marketable securities decreased by $20.6 million to $1.299 billion from
the first quarter of fiscal year 2013. The Company's cash, cash
equivalents and marketable securities balance decreased primarily due to
the Company accelerating the payment of its March quarterly dividend
payment into the December quarter to benefit shareholders due to fiscal
cliff tax rate uncertainties. Concurrent with the December payout, the
Company's Board of Directors approved an increase in the Company's
quarterly dividend from $0.25 per share to $0.26 per share. This marked
the 21st consecutive year the Company has increased its dividend. At the
current stock price the Company's dividend yield is approximately 3%.

According to Lothar Maier, CEO, “As we reported at this time last
quarter, we expected a difficult second fiscal quarter given the tough
economic climate existing domestically and globally. Revenue declined 9%
compared to the preceding quarter. This was within our guidance, though
at the low end, as bookings continued to be weak throughout the first
two months of the quarter. Though we were disappointed in the revenue
decline, we are encouraged that we saw stronger bookings momentum
exiting the quarter and this improvement has continued through the early
stage of the current quarter. Innovation is prevalent in our end markets
and our product positioning is strong. Based upon our current bookings
rate, and assuming business confidence improves, we expect to resume
moderate revenue growth. We currently estimate that fiscal third quarter
revenues will grow in the range of 1% to 4% over the second quarter.”

Except for historical information contained herein, the matters set
forth in this press release are forward-looking statements. In
particular, the statements regarding the demand for our products, our
customers' ordering patterns and the anticipated trends in our sales and
profits are forward-looking statements. The forward-looking statements
are dependent on certain risks and uncertainties, including such
factors, among others, as the timing, volume and pricing of new orders
received and shipped, the timely introduction of new processes and
products, general and country specific conditions in the world economy
and financial markets and other factors described in our 10-Q for the
quarterly period ended September 30, 2012.

Company officials will be discussing these results in greater detail in
a conference call tomorrow, Wednesday, January 16, 2013 at 8:30 a.m.
Pacific Coast Time. Those investors wishing to listen in may call
719-325-4833, or toll free 877-741-4249 before 8:15 a.m. to be included
in the audience. There will be a live webcast of this conference call
that can be accessed through www.linear.com
or www.streetevents.com.
A replay of the conference call will be available from January 16, 2013
through January 22, 2013. You may access the archive by calling (719)
457-0820 or toll free (888) 203-1112 and entering reservation #1296943.
An archive of the webcast will also be available at www.linear.com
and www.streetevents.com
as of January 16, 2013 until the second quarter earnings release next
year.

Linear Technology Corporation, a member of the S&P 500, has been
designing, manufacturing and marketing a broad line of high performance
analog integrated circuits for major companies worldwide for three
decades. The Company's products provide an essential bridge between our
analog world and the digital electronics in communications, networking,
industrial, automotive, computer, medical, instrumentation, consumer,
and military and aerospace systems. Linear Technology produces power
management, data conversion, signal conditioning, RF and interface ICs,
µModulesubsystems, and wireless sensor network products. For
more information, visit www.linear.com.

The Company’s non-GAAP measures set forth above exclude charges related
to stock-based compensation and the amortization of the Company’s debt
discount which is a non-cash interest expense. In addition, the
Company's non-GAAP measures exclude the special expense items related to
the acquisition. The Company’s management uses non-GAAP net income and
non-GAAP earnings per share to evaluate the Company’s current operating
results and financial results and to compare them against historical
financial results. The Company excludes stock-based compensation,
non-cash interest expenses, acquisition related costs and the related
tax effects primarily because they are significant special expense
estimates, which management separates for consideration when evaluating
and managing business operations. In addition management believes it is
useful to investors because it is frequently used by securities
analysts, investors and other interested parties in evaluating the
Company and provides further clarity on its profitability.

In addition, the Company believes that providing investors with these
non-GAAP measurements enhances their ability to compare the Company’s
business against that of its many competitors who employ and disclose
similar non-GAAP measures. This financial measure may be different from
non-GAAP methods of accounting and reporting used by the Company’s
competitors to the extent their non-GAAP measures include other items.
The presentation of this additional information should not be considered
a substitute for net income or net income per diluted share prepared in
accordance with GAAP.